Is Franklin BSP Realty Trust, Inc. overvalued or undervalued?

As of 22 February 2023, the valuation grade for Franklin BSP Realty Trust, Inc. moved from risky to very attractive, indicating a significant improvement in its valuation outlook. The company appears to be undervalued, supported by a P/E ratio of 11, a price-to-book value of 0.58, and an EV to EBITDA ratio of 1.58, all of which suggest that the stock is trading at a discount relative to its earnings and asset values.
In comparison to its peers, Franklin BSP Realty Trust, Inc. has a more favorable valuation profile than The GEO Group, Inc., which has a P/E of 32.63 and is deemed expensive, and Uniti Group, Inc., which is classified as risky with a P/E of 50.89. Notably, the company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -9.73% compared to the index's 12.22%, reinforcing the notion that the stock may be undervalued given its strong fundamentals.